Are you selling your house or thinking about selling? As an alternative to traditional home sales, the rent to own market should not be overlooked. A great number of people are now finding themselves with credit issues and are in a position to rent rather than owning a house for the first time in many years. Has your property been sitting on the market? Are you a landlord with tenants that are interested in owning your property? Unsure what to do with an inherited property? There are many reasons for selling in today’s market. But why not take a moment to consider a rent to own agreement as a viable option! With a rent to own agreement, you have the advantage of maintaining control of the property and setting the terms of the agreement, generally for a period of 3 years. Should your property need any repairs, many of these tenants will gladly opt for “elbow grease” credit for the work they complete on the property. Today we will explore 5 reasons why homeowners should sell their house in Baltimore with a rent to own agreement.
1. Sell for a Higher Price
Because you’re willing to work with your buyers, despite any issues that they may have in qualifying for a conventional loan, you’re in a position to ask more for your house. Likewise, because you’re locking in the price for the term of the lease, despite any downward trend in real estate values, you can set the price at a higher value, determined by the length of the agreement. The ability to sell now for a higher than average market value is another reason why homeowners should sell their house in Baltimore with a rent to own agreement
2. Expand your Buyer Market
Many buyers are finding themselves with less than perfect credit after going through a financially tough period in the economy. This leaves many potential buyers now unable to obtain traditional financing. Likewise, people who may normally have been quite happy as renters are making the move towards a more permanent residence. By opening your potential buyer market wider, you’re much more likely to resolve any financial woes while helping a deserving family transition from renters to homeowners, making them highly desirable as occupants of your property. With a broader buyer base, your home is much more likely to sell while others sit on the market losing value, this is why homeowners should sell their house in Baltimore with a rent to own agreement.
3. Keep the Tax Deductions
While some income you receive may reduce the deduction, you may still claim tax deductions on the property. Any interest on loans for improvements to the property can be written off. Along with the ability to write off interest on any remaining mortgage loan you carry, you’ll also continue to benefit from depreciation. This benefit as the owner of record is another reason why homeowners should sell their house in Baltimore with a rent to own agreement.
4. Receive a Monthly Income Stream
Given your ability to hold the property rather than an outright sale, you’ll be able to earn a steady income stream during the term of the agreement, while the tenants rebuild their credit to purchase the home. In addition to the profit that you will realize from the sale, you can also charge a higher monthly rent rate than average. While a portion of the rental income may apply towards your buyer’s investment, the remainder of the passive income can help you to continue to live your dreams or even invest in more real estate. This is another very motivating factor for homeowners to sell their house in Baltimore with a rent to own agreement.
5. Pride of Ownership
Because your buyers will become owners of the property, the likelihood of the home being well cared for is higher. You’ll find that without any prompting, maintenance and routine tasks are carried out. Damage is prevented because they’ll be acting quickly in the event of plumbing emergencies, roof leaks, and other potential disasters. Unlike renters, a rent to own agreement means that your tenants can be made responsible for repairs and maintenance. Knowing your investment will hold its value because your tenants care about the property brings you peace of mind. This is an important reason homeowners should sell their house in Baltimore with a rent to own agreement.
Fluctuations in the real estate market can be very concerning, One advantage of selling through a rent to own agreement is locking in the future sale price of your home. You’ll have the best of tenants you can rely on treating you and your property with respect because they’ll be the future owners! These are 5 great reasons why homeowners should sell their house in Baltimore with a rent to own agreement. Maryland Home Buyers can help you set it up, and we know how to find the perfect buyer! To learn more about us and what we can do, send us a message or call (410) 657-2523 today.